Question
According to Fin-FSA and based on national regulation (Sijoituspalvelulaki 747/2012) the capital conservation buffer should not be applied to investment firms with personnel under 250 and balance sheet amount under 43 million. Validation rule v8714_m requires that this row (CA4_r750) is reported. How should the capital conservation buffer be reported in this case?
Background on the question
According to Fin-FSA and based on national regulation (Sijoituspalvelulaki 747/2012) the capital conservation buffer should not be applied to investment firms with personnel under 250 and balance sheet amount under 43 million. Validation rule v8714_m requires that this row (CA4_r750) is reported.
Answer
According to article 129 (2) of Directive 2013/36/EU (CRD), a Member State may exempt small and medium-sized investment firms from the requirements set out in that paragraph if such an exemption does not threaten the stability of the financial system of that Member State. As notified by the FIN-FSA (Finland national competent authority) to EBA, this exemption has been exercised via the Act on Investment Firms 747/2012, and therefore, VR v8714_m shall not apply to Finnish investment firms classified as SMEs following article 129 (4) of CRD. VR v8714_m has a “warning” type of severity and will therefore remain as such to allow for the cases described in this Q&A.